Energy Regulation – A Bridge to 2025 The Future Role Of DSOs Valeria Termini Aeegsi Commissioner CEER “ Future role of DSOs ” WG - Co-Chair Brussels, 29 April 2014
The 2025 Bridge and its pillars Green Paper: “Energy Regulation: A bridge to 2025” Encompasses a broad range of issues Gas Infra- Demand Electricity Retail structure Side & Wholesale Wholesale Markets Investment DSOs Markets Markets Launch on 29 April; Responses by 16 June; Conclusions September 2
Drivers of Change in DSO Regulation and Challenges Developments and Challenges Active Changes in demand and Generation prosumers 1. List of DSO activities 2. DSO perimeter (unbundling) 3. Data Management Drivers 4. TSO-DSO coordination European & National Smart 5. Role for flexibility Targets meters 6. Distribution Tariffs 7. Incentives for investments Smart Grids 3
Trends and Technological Innovation • To meet new demand and generation patterns, DSOs will be required to Active grid implement more active and intelligent management, monitoring and management control of their networks • To allow for well functioning customer-centric retail markets, commercial data management will increase in weight as well as in relevance and the Data role of DSOs in this respect will have to be clarified management • The TSO-DSO interface must be designed to ensure efficient information exchange for security of supply, coordinated congestion management System and integrated planning security • DSOs shall remain neutral facilitator for competitive market. It has to be investigated which services could be better provided within competitive Neutral market markets and which additional safeguards (or boundaries) are required to ensure that competitive market can develop. facilitator 4
Impacts on Regulatory framework Although DSOs will continue to pursue their traditional mission, ensuring system security while operating, maintaining and developing efficient distribution networks, they will be asked to perform this series of new activities 30/04/2014
Impacts on Regulatory framework ► The regulatory framework must adapt to this new role of DSOs in order to: • Enable DSOs to take on the role of a neutral market facilitator; • Accompany the development of new markets to the benefit of consumers, including load control and energy usage monitoring; • Review distribution network tariff structure in order to ensure cost recovery and focused incentives for smarter networks; • Assist DSOs and TSOs in clearly defining their roles, allowing the respect of coordination requirements. 6
Regulatory actions concerning the future role of DSOs ► Consult on the future role of DSOs ► Work with DSOs and TSOs in order to more clearly define their respective roles and responsibilities ► Consider whether the current de minimis threshold applying to small DSO networks (100,000 consumers) should be revised. ► Assess innovative regulatory mechanisms to promote necessary but higher risk investments with significant social benefits. ► Consider output-based incentive mechanisms to encourage efficient operations and investments by DSOs in order to have smarter networks (more IT-based control, less copper). 7
Thank you for your attention! vtermini@autorita.energia.it www.ceer.eu
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